Removing someone from DVC

[disney_imagineer]

I know these may be some odd questions, but I was wondering if there's a way to remove someone from DVC? or if it's even worth it?

My brother and I co-own a DVC contract. Now that he's married, he and his wife want to buy their own DVC ownership so they can pass it down to their kids in the future and etc. So he's willing to part his ownership to me.

How is that done? Just sign some paperwork from DVC and that's it? or is there a bigger implication that I do now know about (ie-taxes)?

Or would it be easier to just keep him there since there's no harm to keep his name on this contract? No need for him to part ways, I can just keep his name on the contract but I'll just be paying for all the annual dues and etc.

Similarly, how difficult is it to add a person? I figured down the line, I may want to add my future wife to the contract. Is that a mountain of paperwork and implications as well?

 

[Dean]

You have to go through the change and ROFR just like we've discussed a few times in the last week. You need a new deed and ROFR waiver and have them recorded. If you do it all yourself, as I'd recommend in this situation, cost under $50. Of course if there's a loan, you'll need the lender's permission as well. How many are they planning on buying, you might consider trying to work a deal with your guide to do it all in one OR you might keep them together by doing an add on which could be either for you or for them.

 

[doubletrouble_vb]

I'd contact Disney and ask.

People die, get divorced or get married all the time leaving one party holding the contract. I had a similar situation to yours but with a completely unrelated person....and also not DVC. If one person will still remain on the deed I can't quite see why ROFR would be involved at all. In my situation my friend wrote a quit claim letter as prescribed by the resorts law firm (again not DVC). We had it notarized, sent in a fee and they took care of removing his name from the deed. I double checked it with the county online until it actually appeared under just my name.

 

[debbiepump]

I'd take his name off. There are issues such as bankruptcy claims (and DVC is an asset), divorce, etc.

 

[drusba]

ROFR should not apply when one owner on the deed is simply buying out the other. However, you will need to go through what is essentially a mini real estate closing where the interest is transfered and a new deed is issued and recorded. Also, if there is a current loan on your DVC contract, that loan will have to be paid off as part of that closing unless the lender agrees to redo the loan to allow only one person on it. As mentioned above, it is definitely wiser to have the person taken off your deed. For example, you mention that your brother and you bought the property and now he is married. Under many state laws, his wife, if there is a divorce will be able to claim a share of his interest in the DVC contract and the result could be a forced sale of the DVC contract so she can get her interest paid in cash.

 

[Dean]

ROFR should not apply when one owner on the deed is simply buying out the other. However, you will need to go through what is essentially a mini real estate closing where the interest is transfered and a new deed is issued and recorded. Also, if there is a current loan on your DVC contract, that loan will have to be paid off as part of that closing unless the lender agrees to redo the loan to allow only one person on it. As mentioned above, it is definitely wiser to have the person taken off your deed. For example, you mention that your brother and you bought the property and now he is married. Under many state laws, his wife, if there is a divorce will be able to claim a share of his interest in the DVC contract and the result could be a forced sale of the DVC contract so she can get her interest paid in cash.

ROFR does apply, it's just that DVC chooses to give an automatic pass for this situation ASSUMING no money is changing hands.